Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

As of December 31, 2015, 2014 and 2013 we operated through three reportable business segments: triple-net leased properties, senior living operations and MOB operations. Under our triple-net leased properties segment, we invest in seniors housing and healthcare properties throughout the United States and the United Kingdom and lease those properties to healthcare operating companies under “triple-net” or “absolute-net” leases that obligate the tenants to pay all property-related expenses. In our senior living operations segment, we invest in seniors housing communities throughout the United States and Canada and engage independent operators, such as Atria and Sunrise, to manage those communities. In our MOB operations segment, we primarily acquire, own, develop, lease, and manage MOBs throughout the United States. Information provided for “all other” includes income from loans and investments and other miscellaneous income and various corporate-level expenses not directly attributable to our three reportable business segments. Assets included in “all other” consist primarily of corporate assets, including cash, restricted cash, deferred financing costs, loans receivable and investments, and miscellaneous accounts receivable.

We evaluate performance of the combined properties in each reportable business segment based on segment profit, which we define as NOI adjusted for income/loss from unconsolidated entities. We define NOI as total revenues, less interest and other income, property-level operating expenses and medical office building services costs. We consider segment profit useful because it allows investors, analysts and our management to measure unlevered property-level operating results and to compare our operating results to the operating results of other real estate companies and between periods on a consistent basis. In order to facilitate a clear understanding of our historical consolidated historical operating results, segment profit should be examined in conjunction with net income as presented in our Consolidated Financial Statements and other financial data included elsewhere in this Annual Report on Form 10-K.

Interest expense, depreciation and amortization, general, administrative and professional fees, income tax expense, discontinued operations and other non-property specific revenues and expenses are not allocated to individual reportable business segments for purposes of assessing segment performance. There are no intersegment sales or transfers.

Summary information by reportable business segment is as follows:

For the year ended December 31, 2015:

	Triple-Net Leased Properties			Senior Living Operations			MOB Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	779,801		$	—		$	566,245	$	—		$	1,346,046
Resident fees and services	—			1,811,255			—		—			1,811,255
Medical office building and other services revenue	4,433			—			34,436		2,623			41,492
Income from loans and investments	—			—			—		86,553			86,553
Interest and other income	—			—			—		1,052			1,052
Total revenues	$	784,234		$	1,811,255		$	600,681	$	90,228		$	3,286,398
Total revenues	$	784,234		$	1,811,255		$	600,681	$	90,228		$	3,286,398
Less:
Interest and other income	—			—			—		1,052			1,052
Property-level operating expenses	—			1,209,415			174,225		—			1,383,640
Medical office building services costs	—			—			26,565		—			26,565
Segment NOI	784,234			601,840			399,891		89,176			1,875,141
(Loss) income from unconsolidated entities	(813		)	(526		)	369		(450		)	(1,420		)
Segment profit	$	783,421		$	601,314		$	400,260	$	88,726		1,873,721
Interest and other income												1,052
Interest expense												(367,114		)
Depreciation and amortization												(894,057		)
General, administrative and professional fees												(128,035		)
Loss on extinguishment of debt, net												(14,411		)
Merger-related expenses and deal costs												(102,944		)
Other												(17,957		)
Income tax benefit												39,284
Discontinued operations												11,103
Gain on real estate dispositions												18,580
Net income												$	419,222

For the year ended December 31, 2014:

	Triple-Net Leased Properties		Senior Living Operations			MOB Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	674,547	$	—		$	463,910	$	—		$	1,138,457
Resident fees and services	—		1,552,951			—		—			1,552,951
Medical office building and other services revenue	4,565		—			22,529		2,270			29,364
Income from loans and investments	—		—			—		51,778			51,778
Interest and other income	—		—			—		4,263			4,263
Total revenues	$	679,112	$	1,552,951		$	486,439	$	58,311		$	2,776,813
Total revenues	$	679,112	$	1,552,951		$	486,439	$	58,311		$	2,776,813
Less:
Interest and other income	—		—			—		4,263			4,263
Property-level operating expenses	—		1,036,556			158,832		—			1,195,388
Medical office building services costs	—		—			17,092		—			17,092
Segment NOI	679,112		516,395			310,515		54,048			1,560,070
Income (loss) from unconsolidated entities	859		(658		)	398		(738		)	(139		)
Segment profit	$	679,971	$	515,737		$	310,913	$	53,310		1,559,931
Interest and other income											4,263
Interest expense											(292,065		)
Depreciation and amortization											(725,216		)
General, administrative and professional fees											(121,738		)
Loss on extinguishment of debt, net											(5,564		)
Merger-related expenses and deal costs											(43,304		)
Other											(25,743		)
Income tax benefit											8,732
Discontinued operations											99,735
Gain on real estate dispositions											17,970
Net income											$	477,001

For the year ended December 31, 2013:

	Triple-Net Leased Properties		Senior Living Operations			MOB Operations		All Other			Total
	(In thousands)
Revenues:
Rental income	$	586,016	$	—		$	450,340	$	—		$	1,036,356
Resident fees and services	—		1,406,005			—		—			1,406,005
Medical office building and other services revenue	4,469		—			12,077		1,263			17,809
Income from loans and investments	—		—			—		54,425			54,425
Interest and other income	—		—			—		2,022			2,022
Total revenues	$	590,485	$	1,406,005		$	462,417	$	57,710		$	2,516,617
Total revenues	$	590,485	$	1,406,005		$	462,417	$	57,710		$	2,516,617
Less:
Interest and other income	—		—			—		2,022			2,022
Property-level operating expenses	—		956,684			153,241		—			1,109,925
Medical office building services costs	—		—			8,315		—			8,315
Segment NOI	590,485		449,321			300,861		55,688			1,396,355
Income (loss) from unconsolidated entities	475		(1,980		)	1,451		(454		)	(508		)
Segment profit	$	590,960	$	447,341		$	302,312	$	55,234		1,395,847
Interest and other income											2,022
Interest expense											(249,009		)
Depreciation and amortization											(629,908		)
General, administrative and professional fees											(115,083		)
Loss on extinguishment of debt, net											(1,201		)
Merger-related expenses and deal costs											(21,634		)
Other											(17,364		)
Income tax benefit											11,828
Discontinued operations											79,171
Net income											$	454,669

Assets by reportable business segment are as follows:

	As of December 31,
	2015				2014
	(Dollars in thousands)
Assets:
Triple-net leased properties	$	7,996,645	35.9	%	$	9,115,901	43.1	%
Senior living operations	8,022,206		36.0		7,421,924		35.1
MOB operations	5,209,751		23.4		3,526,217		16.6
All other assets	1,033,316		4.7		1,101,871		5.2
Total assets	$	22,261,918	100.0	%	$	21,165,913	100.0	%

Capital expenditures, including investments in real estate property and development project expenditures, by reportable business segment are as follows:

	For the Year Ended December 31,
	2015		2014		2013
	(In thousands)
Capital expenditures:
Triple-net leased properties	$	1,890,245	$	647,870	$	847,945
Senior living operations	382,877		977,997		576,459
MOB operations	604,827		36,861		189,953
Total capital expenditures	$	2,877,949	$	1,662,728	$	1,614,357

Our portfolio of properties and mortgage loan and other investments are located in the United States, Canada and the United Kingdom. Revenues are attributed to an individual country based on the location of each property.

Geographic information regarding our operations is as follows:

	For the Year Ended December 31,
	2015		2014		2013
	(In thousands)
Revenues:
United States	$	3,086,449	$	2,636,591	$	2,423,399
Canada	173,778		126,435		93,218
United Kingdom	26,171		13,787		—
Total revenues	$	3,286,398	$	2,776,813	$	2,516,617

	As of December 31,
	2015		2014
	(In thousands)
Net real estate property:
United States	$	18,271,829	$	15,334,686
Canada	1,039,561		1,269,710
United Kingdom	313,830		168,594
Total net real estate property	$	19,625,220	$	16,772,990